Griffon Aerospace Wins $68 Million Deal for Outlaw Gen 3 Drone Used in U.S. Epic Fury Iran Operations.

Griffon Aerospace has secured a nearly $68 million U.S. military contract to deliver the newly revealed Outlaw Gen 3 unmanned aerial system, according to the U.S. Department of War/Defense announcement published on June 3, 2026, marking the first public link between the platform and Operation Epic Fury against Iran. The award underscores the expanding operational role of low-cost expendable drones in contested environments, where mass, persistence, and rapid strike capability are increasingly shaping combat effectiveness.

The previously undisclosed Outlaw Gen 3 configuration appears set to strengthen the U.S. Army’s ability to conduct attritable aerial operations without risking high-value assets. Its procurement reflects a broader shift toward scalable unmanned systems that can support surveillance, targeting, and strike missions while enhancing force survivability and operational flexibility in modern warfare.

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Griffon Aerospace Outlaw G2E unmanned aerial target system. The U.S. Department of Defense recently awarded Griffon Aerospace a $67.9 million contract for procurement of the new Outlaw Gen 3 system in support of Operation Epic Fury. No official image of the Outlaw Gen 3 has yet been released. (Picture source: Griffon Aerospace)

The contract announcement identifies the procurement as supporting Operation Epic Fury, the U.S.-led military campaign launched in February 2026 against Iranian military infrastructure, missile forces, drone networks, and security assets. While the Department of Defense did not disclose technical specifications or operational details for the Outlaw Gen 3, the association with an ongoing combat operation suggests a role extending beyond traditional peacetime training requirements.

Griffon Aerospace's Outlaw family has long served as one of the U.S. Army's most widely used aerial target systems. Earlier MQM-170 Outlaw variants were developed to support live-fire exercises, missile testing, air defense training, and operational evaluations across the U.S. Army, Navy, Air Force, and Marine Corps. The aircraft's relatively low cost, autonomous flight capability, and ability to replicate aerial threats have made it a valuable tool for testing and validating defensive systems.

The emergence of the Outlaw Gen 3 designation indicates a significant evolution of the system. Although Griffon Aerospace has not yet released official specifications, previous generations incorporated improvements in endurance, payload capacity, maneuverability, and mission flexibility. The new variant is likely designed to address evolving operational requirements driven by the rapid proliferation of drones, cruise missiles, and integrated air defense systems observed in recent conflicts.

The timing of the procurement is particularly notable. Since the start of Operation Epic Fury, U.S. forces have conducted extensive air and missile operations against Iranian targets while simultaneously facing increasingly sophisticated air defense and unmanned aerial threats. In such an environment, attritable unmanned aircraft can provide valuable capabilities ranging from threat simulation and mission rehearsal to decoy operations, sensor testing, and electronic warfare support.

Modern military campaigns increasingly rely on expendable unmanned systems capable of saturating enemy sensors, triggering radar emissions, or creating false target tracks that complicate defensive decision-making. While no official statement has confirmed the Outlaw Gen 3's operational employment in these roles, the direct linkage between the procurement and an active combat operation raises the possibility that the system may support operational missions in addition to its traditional training function.

The contract also reflects broader Pentagon efforts to expand inventories of affordable unmanned aircraft capable of supporting high-tempo operations. Lessons from conflicts in Ukraine and the Middle East have demonstrated that attritable drones can deliver significant operational effects at a fraction of the cost of manned aircraft or advanced missile systems. This has accelerated investment across the U.S. defense establishment in systems that can be rapidly produced, deployed, and replaced when necessary.

For Griffon Aerospace, the award further strengthens its position as a key supplier of unmanned systems supporting U.S. military readiness and operational effectiveness. The company's target drone portfolio has become an integral component of American air defense testing and training activities, while the introduction of the Outlaw Gen 3 may signal an expansion into more operationally focused missions.

Although many details surrounding the new system remain classified, the contract's connection to Operation Epic Fury suggests that the Pentagon sees growing value in versatile unmanned aircraft capable of supporting both combat readiness and operational requirements. As U.S. forces continue operations against Iran and prepare for future high-intensity conflicts, systems such as the Outlaw Gen 3 could become increasingly important tools for enhancing survivability, expanding tactical options, and complicating enemy defenses.

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Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.